1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Sep. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

PATIENT SERVICE REVENUES

The following is a summary of sources of patient service revenues (net of contractual allowances and discounts) before provision for doubtful accounts:

	Three months ended September 30,				Six months ended September 30,
	2013		2012		2013		2012
Medicare and Medicare managed care	$	24,196	$	22,728	$	47,582	$	48,592
Medicaid and Medicaid managed care		35,610		61,732		196,789		82,997
Managed care		26,827		33,016		56,203		61,134
Indemnity, self-pay and other		10,439		21,015		34,018		36,515
	$	97,072	$	138,491	$	334,592	$	229,238

The following is a summary of Medicaid and Medicaid managed care patient service revenues excluding QAF and Medicaid Disproportionate Share Hospital (“DSH”) payments:

	Three months ended September 30,						Six months ended September 30,
	2013			2012			2013			2012
Medicaid and Medicaid managed care	$	35,610		$	61,732		$	196,789		$	82,997
QAF		(7,783	)		(38,743	)		(150,001	)		(38,743	)
DSH		(4,196	)		(5,095	)		(7,493	)		(6,873	)
	$	23,631		$	17,894		$	39,295		$	37,381

RECEIVABLES AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

The following is a summary of the principal components of accounts receivable and due from/to government payers as of September 30 and March 31, 2013:

	September 30,			March 31,
	2013			2013
Accounts receivable:
Patient accounts receivable	$	93,644		$	83,964
Allowance for doubtful accounts		(33,567	)		(21,143	)
Accounts receivable, net	$	60,077		$	62,821
Due from government payers:
DSH	$	7,775		$	5,882
	$	7,775		$	5,882
Due to government payers:
Settlement payables	$	170		$	179
	$	170		$	179

FAIR VALUE MEASUREMENTS:

Warrant liability

The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis and where they are classified within the hierarchy as of September 30 and March 31, 2013:

	Total		Level 1		Level 2		Level 3
Warrant liability at September 30, 2013	$	19,297		–		–	$	19,297
Warrant liability at March 31, 2013	$	5,276		–		–	$	5,276

Warrant liability - fair value measurements using significant unobservable inputs

Warrant liability - fair value measurements using significant unobservable inputs (Level 3)
Balance at March 31, 2013	$	5,276
Change in fair value of warrant liability included in earnings		6,645
Balance at June 30, 2013		11,921
Change in fair value of warrant liability included in earnings		7,376
Balance at September 30, 2013	$	19,297